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Vehicle expense claim

Initiate

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Replies 4

Hi,
I'm looking for clarification of the following scenario in regards to vehicle expense claims, for a fictional character named Jim:

Jim is a gigging and recording musician, with an ABN and this forms a large part of his income. Jim's other major income comes as a music teacher, where he teaches both acoustic guitar lessons and classroom music classes, at a secondary school 45 mins away from his house. 
Seeing as Jim needs to take his bulky cased acoustic guitar to school to teach (it is not practical to have a large acoustic guitar case on public transport, nor is any available in a practical sense to that particular school) and despite the availability of (low security) cupboards at the school, Jim needs to take his guitar home with him at the end of the day in order to record in evenings or play gigs, both of which lead to income, as well as the income of course produced by Jim having his guitar to teach lessons on throughout the course of the day at the school. 

Is Jim entitled to claim his travel expense kms to and from this school?

Thanks,
Jims mate. 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 3

Hi @mb123

 

It comes down to an interpretation of 'bulky equipment' . In the 2020 Tax Time Toollkit(transport & logistics)  for specific deductions claimable for various occupations, the common statement is deductibility is allowable if, "the equipment is bulky – at least 20kg or cumbersome to transport" (italics added).

 

Our other relevant webpage is Car and travel expenses 2020. The point on deductibility is here -

" you used your car because you had to carry bulky tools or equipment that you used for work and could not leave at your workplace (for example, an extension ladder or cello) " (italics added).

 

The points from the above information that match what you have already stated in your question - is that this equipment is difficult to transport and not able to be stored at your workplace. In these circumstances, it would be my general advice that you can claim these car expenses, as stated (however, should some of these circumstances change eg allowing you to store this equipment securely at school, that this may affect this legitimacy of your claim). You can go to D1 work related car expenses to work out your claim.

 

 

4 REPLIES 4

Most helpful response

Former Community Support

Replies 3

Hi @mb123

 

It comes down to an interpretation of 'bulky equipment' . In the 2020 Tax Time Toollkit(transport & logistics)  for specific deductions claimable for various occupations, the common statement is deductibility is allowable if, "the equipment is bulky – at least 20kg or cumbersome to transport" (italics added).

 

Our other relevant webpage is Car and travel expenses 2020. The point on deductibility is here -

" you used your car because you had to carry bulky tools or equipment that you used for work and could not leave at your workplace (for example, an extension ladder or cello) " (italics added).

 

The points from the above information that match what you have already stated in your question - is that this equipment is difficult to transport and not able to be stored at your workplace. In these circumstances, it would be my general advice that you can claim these car expenses, as stated (however, should some of these circumstances change eg allowing you to store this equipment securely at school, that this may affect this legitimacy of your claim). You can go to D1 work related car expenses to work out your claim.

 

 

Initiate

Replies 2


@WainWright wrote:

Hi @mb123

 

It comes down to an interpretation of 'bulky equipment' . In the 2020 Tax Time Toollkit(transport & logistics) for specific deductions claimable for various occupations, the common statement is deductibility is allowable if, "the equipment is bulky – at least 20kg or cumbersome to transport" (italics added).

 

Our other relevant webpage is Car and travel expenses 2020. The point on deductibility is here -

" you used your car because you had to carry bulky tools or equipment that you used for work and could not leave at your workplace (for example, an extension ladder or cello) " (italics added).

 

The points from the above information that match what you have already stated in your question - is that this equipment is difficult to transport and not able to be stored at your workplace. In these circumstances, it would be my general advice that you can claim these car expenses, as stated (however, should some of these circumstances change eg allowing you to store this equipment securely at school, that this may affect this legitimacy of your claim). You can go to D1 work related car expenses to work out your claim.

 

 


Thanks for that @WainWright - if the school DID have a more secure facility available, but the guitar was still required at home on evenings after that work so was necessary to transport it home also to carry out income related activity (i.e practicing songs for wedding gig on weekend, recording an album which would be sold etc), would that negate that point?

 

Thanks

Initiate

Replies 1


@mb123 wrote:

@WainWright wrote:

Hi @mb123

 

It comes down to an interpretation of 'bulky equipment' . In the 2020 Tax Time Toollkit(transport & logistics) for specific deductions claimable for various occupations, the common statement is deductibility is allowable if, "the equipment is bulky – at least 20kg or cumbersome to transport" (italics added).

 

Our other relevant webpage is Car and travel expenses 2020. The point on deductibility is here -

" you used your car because you had to carry bulky tools or equipment that you used for work and could not leave at your workplace (for example, an extension ladder or cello) " (italics added).

 

The points from the above information that match what you have already stated in your question - is that this equipment is difficult to transport and not able to be stored at your workplace. In these circumstances, it would be my general advice that you can claim these car expenses, as stated (however, should some of these circumstances change eg allowing you to store this equipment securely at school, that this may affect this legitimacy of your claim). You can go to D1 work related car expenses to work out your claim.

 

 


Thanks for that @WainWright - if the school DID have a more secure facility available, but the guitar was still required at home on evenings after that work so was necessary to transport it home also to carry out income related activity (i.e practicing songs for wedding gig on weekend, recording an album which would be sold etc), would that negate that point?

 

Thanks


Or would the ATO view that as (student level, not professional) guitars are available for use at the school, transporting my own guitar is a matter of personal choice etc and therefor it is not a valid claim? I'm not sure on this as i'm sure a tradesperson would be entitled to use professional level tools as opposed to entry level tools if they were available etc...
Thanks

ATO Community Support

Replies 0


Hi @mb123

 

If you're concerned that your circumstances are not covered under the advice on the website you are welcome to seek a private and binding ruling from us. It is a free service.